Gold has risen to a good $1,230 per troy ounce at the start of the new week of trading and has thus achieved a new three-month high.
Silver is likewise priced noticeably firmer at $17.8 per troy ounce, its highest level since the end of January. Prices of both precious metals are likely to have been driven up partly by speculation, for gold and silver ETFs tracked by Bloomberg saw virtually no inflows at the end of last week (0.5 tons in the case of gold) or even, in the case of silver, significant outflows (88 tons). What is more, coin sales in the US are relatively subdued at present. Money managers had already expanded their net long positions in both gold and silver - albeit from low levels - in the week to 12 May.
According to a minister of state, India imported more than 100 tons of gold in April for already the second consecutive month. Imports apparently totalled 111 tons last month, following a figure of 125 tons in March. In May too, imports have allegedly already amounted to around 60 tons of gold so far.
The Indian Ministry of Finance attributes the increased imports to seasonally higher demand and lower gold prices. The gold price in Indian rupees dropped to a 3½-month low in mid-March, though it has picked up considerably again in the meantime.
"Furthermore, the festival season has now come to an end, which means imports are likely to decline again soon", according to Commerzbank.
